CBRE commits to VTS with $100m investment
Starting in the US, the real estate services giant will roll out VTS as the tech platform of choice for its agency leasing and property management teams.
CBRE led VTS‘s latest funding round, providing $100m of the $125m that the rapidly expanding, multi-product proptech business raised. Other investors include BentallGreenOak, AmTrust, Brookfiled Ventures and Insight Venture Partners.
VTS has grown significantly from its early days as a leasing operations tool. In recent years, it has added products for tenant experience and building operations (VTS Rise), market data (VTS Data) and marketing (VTS Market) to its platform.
Last year was particularly busy for VTS with two massive acquisitions – Rise Buildings and Lane Technologies – strengthening its foothold in the building operations space.
The platform is now used by 19 of the 20 largest global asset managers. More than 300,000 tenant companies are managed with the product, which VTS said makes it the most widely used software in commercial real estate.
As part of its deepening partnership with VTS, CBRE will adopt the platform – with “unique enhancements and integrations” – across the business.
Bob Sulentic, president and CEO of CBRE, said: “VTS is one of the most highly successful proptech companies in the history of our sector. Their proprietary technology has redefined how industry professionals lease and manage space.
“Our investment in VTS is consistent with our strategy of partnering with exceptional companies that bring powerful resources to our clients and our people. We look forward to helping VTS accelerate their growth and to working with them to create a differentiated technology platform for our brokers, building owners and tenants.”
The $125m fundraise follows VTS securing $150m in debt financing from Canadian-based CIBC Innovation Banking.
VTS will use the combined $275m of new funding to accelerate its product development, source strategic acquisitions and grow its team, particularly in the US, UK and Canada.
Nick Romito, CEO of VTS, said: “Over the past two years, VTS has undergone a transformative evolution, shifting from a single-product company to a multi-product platform that serves every player in the ecosystem — from landlord to broker to tenant. This infusion of capital lets us double down there, allowing our customers to offer a completely tailored property experience to their tenants across their entire portfolios.
“We look forward to expanding upon our long-standing relationship with CBRE, which shares this same vision in providing their people and customer base with technology that delivers a modern, portfolio-driven experience across all asset types.”